Massive Interest rate cuts in PPF Savings

[manu1991]

Inflation is around 5% so in real terms you will not earn anything substantial by keeping money in PPF.

 

[Sushubh]

this increases confusion on whether i should extend my ppf next month for five years. i mean sure ppf interest is tax free (for now) and fd interest would probably drop down in coming days (if not from tomorrow). but this is just sad.

 

[manu1991]

If you are in the 20% or 30% tax bracket, PPF is still better.

 

[mikrotik]

You never know when the next "Aaj raat 12 baje se" happens and ppf interest comes under tax

 

[Sushubh]

heh. i still remember the time when kvp from india post would double your money in flat five years. now it takes more than 12-13 years. with this interest rate drop... probably 15 now?

 

[manu1991]

From what I remember, roughly whatever multiplied by the interest rate gives you close to 72 is when the money will double so at 6% it would be roughly 12 years.

I am guessing they want more people to put money in the stock market but then they stopped equity mutual funds being tax free as well

 

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[mhsabir]

No Interest Cut On Small Savings, "Orders Issued By Oversight"

Steep cuts on interest rates on small savings schemes announced last evening were rolled back by the government today with Finance Minister Nirmala Sitharaman undoing what she called "orders issued by oversight".

www.ndtv.com

 

[mikrotik]

Aajkal kuch zayada hi oversight hone lag gayi. The oversight was that the order was released during elections. Let the elections pass and the oversight will be corrected.

 

[mhsabir]

Right, it was surprising that they took this step during elections. I guess will apply from next quarter or something.

 

[Sushubh]

Who greenlit small savings scheme rates cut ‘by oversight’? Nirmala Sitharaman herself

RTI request shows the finance minister approved the revision in interest rates she later claimed had been ordered ‘by oversight’.

www.newslaundry.com